Alternate Tax Rate/Area Assignments for Real Estate Management
You can set up and use the alternate tax rate/area assignment functionality to use a specific tax rate/area when the countries of the entities involved in a transaction are in the European Union (EU).
When you set up your system to use the alternate tax rate/area assignment functionally, you set up these components:
Alternate tax rate/area assignment company constant.
If you enable the constant, you also specify whether the system sets an error or warning message or displays no message when the tax ID or an alternate tax rate/area definition does not exist for the entities involved in a transaction.
Alternate tax rate/area definitions.
The alternate tax rate/area definitions enable you to set up different tax rate/areas based on the country of these entities:
Building company
Tenant
Building
If you set up the alternate tax rate/area assignment functionality and the countries of the entities involved in the transaction are in the EU, the system retrieves the alternate tax rate/area based on how you set up the error handling in the Alternate Tax Rate/Area Company Constant.
Errors occur when the system cannot locate a valid tax ID for the entities. When the entity is set up in the Tenant Information program (P01012), the system uses the address book number of the tenant to locate the tax ID. If the entity is not set up in the address book record, the system uses the Business Unit Master table (F0006). If the Tax ID is missing from the records, then the system displays an error or warning message if you set up the Alternate Tax Rate/Area Assignment Company Constant to display a message.
This list describes how the system retrieves the tax rate/area when the functionality is enabled for the building company:
If no error occurs, then the system retrieves the alternate tax rate/area if the entities involved in the transaction are in the EU.
If the entities are not in the EU, then the system uses the default tax rate/area. The system uses the tenant and building (business unit) to retrieve the default tax rate/area.
If an error occurs and the Alternate Tax Rate/Area Assignment Company Constant is not set up to display an error or warning message, the system retrieves the default tax rate/area.
If an error occurs and the Alternate Tax Rate/Area Assignment Company Constant is set up to show an error message, then the system does not retrieve any tax rate/area. The tax rate/area remains blank.
If you set up the error handling to issue a warning message, you can override the message to have the system retrieve the default tax rate/area.
The system can assign an alternate tax rate/area when you work with these programs:
Manual Billing (P1511)
See Alternate Tax Rate/Area Assignment Functionality for Manual Billing
Recurring Billing Revisions (P1502)
See Alternate Tax Rate/Area Assignments in Recurring Billing
Expense Participation (P15012)
See Alternate Tax Rate/Area Assignments in Expense Participation
Sales Overage information (P15013)
See Alternate Tax Rate/Area Assignment for Sales Overage Information
Escalation Information (P15016)
See Alternate Tax Rate/Area Assignment in Escalation Information
Lease Global Update (R15117)